Stock Markets Crash in Asia

A global stocks selloff deepens;

MSCI Asia Pacific plungesJapan benchmark index falls over 7%, extending Friday’s loss

Treasury two-year yields fall as much as 11 basis points

For equity investors, the Chinese onshore market might be the better place to be today.

The benchmark CSI 300 Index has held off better than regional peers, paring an early loss to gain as much as 0.4%, boosted by consumer staples and health care shares.

The S&P 500 appears destined to breach support around its 100-DMA of 5,307 today. If it does then it opens the door to a test in coming days of support at 5,071, the 38.2% Fibonacci retracement of its Oct.

27, 2023 to July 16 rally.

The tech-led selloff in recent weeks has infused panic into the buy-on-dip mood that has dominated in most areas of the world since the epidemic lows, indicating a significant reset in equities’ return expectations by the end of the year.

Multiple market indicators are approaching bearish milestones as concerns increase that a major global reset is beginning, with the US potentially entering a recession, the Bank of Japan’s policy tightening unraveling the yen carry trade, and tensions in the Middle East intensifying.